Signs of the current credit crunch are everywhere, but few are more alarming than the notion that with with employee job layoffs increasing, people are dropping their auto insurance in order to save money.

According to the Insurance Research Council, even though more people were carrying insurance in 2007 than were doing so in 2002, right now, fewer people are renewing the insurance they already have.

In addition, the Research Council says, the economic climate we're in right now is more expecting layoffs, with even more people dropping their insurance, or not insuring their vehicles at all.

Legal issues aside (almost every state in the country has some kind of "mandatory minimum" liability insurance requirement in order to maintain your license and registration), this is a frightening and potentially expensive prospect. Why? Because when it comes to anything traffic related, it isn't just about you, it's about every other driver on the road.

For example, you may be an incredibly safe driver with a clean driving record, and you may feel it's safe to drop your insurance, but what if someone hits you? What if they're not insured? Normally, you'd have uninsured motorist coverage, but in this scenario? You'll be paying for any repairs to your own car out of your pocket.

In addition, dropping insurance makes coverage more expensive for everyone else. According to the Insurance Research Council, again, for every one percent increase in the unemployment rate, there is a corresponding 0.75% increase in the number of uninsured motorists, and that means more expensive premiums for everyone else.